 California Governor Arnold Schwarzenegger, second from left, talks with Hyundai-Kia Automotive Group Chairman Chung Mong-koo, right, while on board Korea’s bullet train, the KTX, Wednesday. / Courtesy of Hyundai Motor |
By Cathy Rose A. Garcia
Hyundai Motor will invest $150 million to build its new North American headquarters in Orange County, California, a move praised by Governor Arnold Schwarzenegger for creating much-needed jobs in his home state.
Hyundai-Kia Automotive Group Chairman Chung Mong-koo expressed the company’s commitment to maintain its North American headquarters in California, during a meeting with Schwarzenegger in Seoul, Wednesday.
``Currently, a total of nine companies within the Hyundai Motor Group have made significant investments to establish U.S. headquarters in California. The construction of a new Hyundai Motor headquarters in Orange County takes the commitment and strong cooperation between Hyundai and the state of California to a new level,” Chung said, in a statement.
Hyundai’s headquarters have always been located in California since 1985. The latest investment will allow the company to double its workforce from 700 to 1,400 in the coming years. Construction of the building is expected to create 1,500 new construction jobs and provide Orange Country with $273 million in economic output.
``This means thousands of jobs for Californians at a time when they are needed most and an important boost to our local and state economies,’’ Schwarzenegger said.
Schwarzenegger also met with Korean Air chairman Cho Yang-ho, whose company announced last March a $1 billion investment in the redevelopment of the Wilshire Grand Hotel and Center in Los Angeles. The project is estimated to create 7,000 construction jobs and over 4,000 permanent jobs.
``Today’s announcements reiterate how our global economy directly and positively impacts California. Two of South Korea’s top companies ― one of the largest automobile manufacturers in the world and a world-class airline ― have chosen California as a second home,” Schwarzenegger said.
Meanwhile, Schwarzenegger also urged the U.S. Congress to ratify the U.S.-Korea free trade agreement (KORUS FTA) to spur his country’s economy and create more jobs.
``In these tough economic times, the worst thing America can do, the worst thing any nation can do, would be to turn inwards and to go back to protectionism. History shows that going down that path never leads to economic prosperity, it leads to economic suicide,’’ he said, during a breakfast meeting organized by the American Chamber of Commerce in Korea (AMCHAM) at the Grand Hilton Hotel, Seoul, Wednesday. Some 600 Korean and American business leaders attended the special event.
The KORUS FTA was signed on June 30, 2007, but it has not been approved by the U.S. Congress.
Schwarzenegger emphasized the benefits of free trade for both countries, but especially California. Korea is the state’s fifth largest trading partner, and in 2009, its exports to Korea reached $6 billion.
``If the FTA is ratified, our exports will grow by $2 billion... All of this would mean thousands of jobs in California in a time when we need those jobs... Today, I say to Congress, if you are for jobs and for stimulating the economy and if you believe in economic freedom, then approve these FTAs, so we can have jobs, not next month, not next year but right now,’’ Schwarzenegger said.
The former Hollywood action star-turned-politician has been on a week-long trade mission to Asia, with earlier stops in China and Japan, accompanied by 100 businessmen from California.
Schwarzenegger said it was his experiences as a bodybuilder and actor that showed him the importance of the global market. ``I learned that you can’t just think national but think international,’’ he said.
Also on Wednesday, Schwarzenegger took a test ride on Korea’s KTX bullet train. California is planning to build a high-speed railway, and top companies from Germany, France, China, Japan and Korea are interested in providing their technology for the $40 billion project.
``I want to learn what makes it so well-run and its technology. That way we can apply the same techniques to our high-speed rail we are going to build in California... We hope Korea will bid on the high-speed rail (project). It will be a terrific partnership,’’ he said.
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